ERBIL, Kurdistan Region of Iraq - The state-owned Trade Bank of Iraq (TBI) on Friday announced it will provide loans under a solar energy initiative to employees whose salaries are deposited with the bank.

The move is part of a broader effort to boost alternative energy and reduce the strain on the country’s power grid, the bank’s head of the board of directors Bilal al-Hamdani told state media.

“The bank granted solar energy initiative loans to employees whose salaries are nationalized, as part of its approach to supporting alternative energy projects and reducing pressure on the electrical system,” Hamdani said.

He clarified that the bank mostly works with investors and businessmen as it has a limited number of branches.

The national grid in Iraq routinely shuts off for hours a day, excluding the Kurdistan Region, where a landmark round-the-clock electricity project has vastly improved the provision of electricity.

Iraq plans to generate 12,000 megawatts from renewable sources by 2030, aiming to ease pressure on the national grid. On peak summer days, demand may reach 55,000 megawatts while supply remains around 28 megawatts, showing the urgent need for new solutions. 

Many Iraqis are turning to solar energy to cope with frequent and costly power outages. In areas like Mosul and agricultural regions, solar panels on homes and farms are helping people power their irrigation systems and reduce electricity bills.